Sri Lanka grows 2.9-pct in third quarter 2018

ECONOMYNEXT – Sri Lanka’s gross domestic product grew 2.9 percent in the third quarter of 2018 from a year earlier with agriculture growing 3.3 percent compared to a contraction a year earlier, the state statistics office said.

The second quarter growth was revised to 3.6 percent from 3.7 percent.

The 9-month growth was 3.3 percent.

Industry grew 1.9 percent and service grew 3.9 percent.

Rice output grew 46.9 percent, reversing from a contraction of 32.8 percent a year earlier.

In industry manufacturing had grown 2.2 percent, with apparel up 3.7 percent. Construction was up 2.5 percent.

In services telecoms had grown, 14.8 percent, financial services 12.4 percent. 

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Sri Lanka’s economy has grown despite balance of payments pressure and capital flight being triggered by a non-credible soft-pegged monetary arrangement which is now threatening foreign debt repayments.

In October a political crisis was triggered. (Colombo/Dec18/2018 – Update II)